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Spotify wants Apple to make bigger App Store alterations
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Jun 9, 2016, 09:05 PM
Upcoming changes to the App Store are welcomed by Spotify, but the music subscription service believes there is more Apple could do to it, an executive for the music streaming service has advised. Global head of corporate communications and global policy Jonathan Prince calls Apple's changes, which include alterations to the way it handles app subscriptions, a "nice gesture, but doesn't get to the core of the problem with the Apple tax and its payment system."

Revealed yesterday by Apple Senior Vice President of Worldwide Marketing Phil Schiller ahead of WWDC, subscriptions stemming from apps will stay at a 70-30 split between the developer and Apple for the first year, but the second year will change the split to 85-15, increasing the amount developers receive. There will also be over 200 subscription price points available, with added options to create territory-specific prices, and users will be easily able to upgrade, downgrade, or "side-grade" between subscription options if a choice is made available by the developer.

"Unless Apple changes its rules, price flexibility is prohibited, which is why we can never provide special offers or discounts, and means we won't have the ability to share savings with our customers," Prince told The Verge. "Apple still insists on inserting itself between developers and their customers, which means developers will continue to lack visibility into why customers churn – or who even qualifies as a long-term customer."

This is certainly not the only time Spotify has attacked Apple's transaction charges. Last year, the company explained to customers who subscribed via its iOS app why it cost $3 more than by going through other means, and advised customers on how to save that $3 by subscribing to Spotify directly.
( Last edited by NewsPoster; Jun 9, 2016 at 09:09 PM. )
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Jun 10, 2016, 08:26 AM
So, now does Apple work for Spotify? I didn't think Spotify was able to monetize its own business that well and now they're telling Apple how to do it. They shouldn't need Apple at all.
Mike Wuerthele
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Jun 10, 2016, 08:49 AM
I think that since this isn't an official release announcement, that the cosmic freak-outs we're seeing should slow a bit. I'm not saying its going to be a better deal, but man -- all this from an interview, and not any official word on how things are going to work.
( Last edited by Mike Wuerthele; Jun 10, 2016 at 09:59 AM. )
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Jun 10, 2016, 09:08 AM
I suspect these changes are not for music-subscription services such as Spotify. They're for developers of well-designed, useful apps who've been trapped in a terrible Catch 22. Price the app high enough to cover years of further development, and too few people will buy and discover how useful it is. Price it too low to cover those costs, and developers go broke thanks to an app store that doesn't allow trying-before-buying or charging for upgrades. This broadened scheme with more money going to developers assures them of a steady income. Apple needs to come up with other answers for companies such as Spotify and online stores. For what those companies do, 30% and even 15% is way too much. It's ridiculous for Apple to charge only a small percentage to those who buy WITH their iPhone but many times more for those who buy ON their iPhone. The two charges should be similar.
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